Valuation Services Case Studies
Our ability to analyze, model, and craft rigorous valuation opinions, as well as successfully defend them, is why we produce positive results for our clients where it matters most. We’ve valued hundreds of diverse companies -- from the world’s largest corporations to the smallest boutique businesses.
Sample client engagements include:
Intellectual Property
AlixPartners valued intellectual property in a liquidation context for an international passenger and cargo airline in connection with the Best Interests Test for the company's plan of reorganization. After an initial assessment of the intellectual property that might have value in both orderly liquidation and forced liquidation scenarios, our professionals, in conjunction with the company and its advisors, selected and then valued the company's trade name portfolio, frequent flyer program and a customer list. The company's reorganization plan was successfully confirmed.
Expert Testimony
In a litigation involving ownership interests in an Internet company, we valued an online automotive website and provided expert testimony on case critical valuation issues. Valuation issues that were addressed included an analysis of intangible assets of the start-up Internet company. The testimony provided by AlixPartners and other witnesses resulted in a favorable decision for our client by a jury at trial.
Independent Verification & Exit Strategy
AlixPartners' professionals were retained by the Attorney General of a Midwestern state to review the sale of a distressed not-for-profit urban hospital system. After evaluating the proposed consideration, including AlixPartners' estimate of the value of warrants in the privately held acquirer, the operating environment, the financial condition of the purchaser pro forma for the transaction and other critical factors, AlixPartners was able to provide independent verification that the deal was in fact reasonable and the best exit strategy available to the system and the community it served.
Expert Testimony for a Shareholder Dispute
AlixPartners' professionals were retained on behalf of the respondent to determine the value of a Latin American wireless telecom company in connection with a shareholder dispute in a major international arbitration. We analyzed the value of the company at several points in time and issued an expert report. Given the nature of the wireless industry and the volatile nature of the subject country and market, AlixPartners performed a substantial amount of economic and political research and analysis as part of our formation of a rigorous valuation opinion.
Expert Testimony for a Solvency Dispute
The Unsecured Creditors Committee of a satellite phone operator sought to recover $3.7 billion in fees paid to the operator for constructing the satellite network, arguing that the fees were a fraudulent conveyance. AlixPartners' professionals were retained to evaluate the solvency of the operator under the three tests of solvency, and our professionals testified at trial to the valuation and resultant solvency of the operator at the relevant time periods. In addition to traditional valuation approaches, we looked to contemporary market evidence of the significant value of the company including multiple rounds of debt and equity financing raised by the subject company and debt and equity analyst reports. The judge agreed with the testimony, citing the significant market evidence of value and solvency which we highlighted in support of the conclusion, and ruled in favor of our client.
Plan of Reorganization Value - Best Interests Test
AlixPartners' was retained by a U.S. based global airline operating under Chapter 11 to value the company's frequent flyer rewards program, trade names and other intellectual property assets as part of the Company's assessment of whether its proposed plan of reorganization met the Best Interests Test. Working on a tight timeline, our team worked with management and its advisors to identify and then value the intellectual property on a liquidation basis. Our work was incorporated into the Company's overall Best Interests Test analysis which indicated that the plan was fair and the Company subsequently emerged from Chapter 11 as a stand-alone entity.
Fresh Start Accounting
Working closely with the Company and its outside advisors, AlixPartners conducted a comprehensive valuation analysis for Fresh Start reporting purposes for a North American based, oilfield services company. AlixPartners assessed the Company's operations and helped determine what types of intangible assets existed and at which reporting unit and then valued the intangible assets as well as the overall enterprise value of the business on a reporting unit basis. AlixPartners was able to convey its analysis concisely and effectively to the Company's advisors and auditors and help it meet its financial reporting timeline.
Acquisition Purchase Accounting
AlixPartners was retained by an international food conglomerate to value the intangible assets acquired in a multi-billion dollar purchase of an international food company for purchase accounting and tax purposes. Our analysis included valuing all categories of identifiable intangible assets, such as trademarks, in-process research and development, and customer relationships, as well as determining the goodwill resulting from the transaction.
Transfer Pricing and Cost Sharing
AlixPartners was retained by an international pharmaceutical company to value the intangible property acquired in the company's acquisition of a U.S. pharmaceutical company in the dermatology sector. The engagement involved the valuation of significant intellectual property related to both marketed pharmaceutical products as well as products currently in the research and development phase. Our analysis was utilized to assist our client in determining the appropriate value for certain intellectual property transferred from the its U.S. subsidiary to the foreign parent company in compliance with the transfer pricing guidance provided by Section 482 of the U.S. Tax Regulations. We also provided a cost sharing analysis and prepared a detailed cost sharing study related to a client's planned internal development of certain patented technology into a marketable pharmaceutical product. Our analysis included valuing the respective contributions of the U.S. and international subsidiaries to the proposed cost sharing arrangement, assessing the parties' respective anticipated benefits from the cost sharing arrangement and determining the appropriate level of future costs to be borne by the parties. Analysis was performed in accordance with Section 482 of the U.S. Tax Regulations.
IRS Negotiations
AlixPartners was retained to assist a multi-national taxpayer in its negotiations with the Internal Revenue Service regarding the value of certain intangible assets transferred between U.S. and foreign subsidiaries. We provided a detailed valuation analysis and prepared a rebuttal report analyzing the IRS' economist's position. AlixPartners met with representatives of the Internal Revenue Service to present our valuation analysis and our critique of the economist's position.
Determining Value in an M&A Environment
AlixPartners assisted a manufacturer in negotiating its potential sale to a public company. The company operated as an ESOP, thereby adding additional complexity to its structure and value determination in an M&A environment. Our role included assessing the value of the company under numerous scenarios, negotiating with the potential buyer, providing management and the board of directors with strategic and financial advice, assisting in determining the optimal structure and consideration of the deal and preparation in support of the transaction for regulatory purposes.
Plan of Reorganization Value - Bankruptcy Strategy and Negotiation
On behalf of the board of directors, AlixPartners' valuation team was engaged to provide a comprehensive, global analysis of a major automotive OEM in connection with the assessment of the sale of its assets under Section 363 of the U.S. bankruptcy code. Working with OEM employees and the Company's advisors globally, AlixPartners rapidly assessed the going concern value of core foreign operations, joint ventures and stakes in a myriad of other ancillary businesses and also determined the value, on a liquidation basis, of the Company's North American business and other diverse assets. The board ultimately decided to pursue the sale and the new entity subsequently emerged from Chapter 11 with a supportable capital structure and improved operations.